DIFC’s first regulated tokenized money market fund is now live, according to a press release. The QCD Money Market Fund (QCDT), which is backed by Qatar National Bank (QNB) Group, Standard Chartered, and DMZ Finance, is structured for institutional use cases including bank collateral, exchange collateral mapping, and stablecoin reserves. The fund had secured regulatory approval last July.

SOUND SMART- Tokenizing a money market fund means putting ownership shares on blockchain rails, thereby turning a traditional low-risk, interest-bearing investment vehicle into a digital asset that can be traded, settled, and integrated across decentralized and conventional platforms.

Why it matters: The QCD Money Market Fund is the first regulated product of its kind in DIFC, offering investors exposure to tokenized yield-breaking instruments. The fund is the first under a planned QCD umbrella of tokenized funds.

How the fund is structured: QNB is the initiator and underlying investment manager, while DMZ Finance acts as co-initiator and tokenization provider. Capricorn Fund Managers has been tapped as the fund manager, and Standard Chartered serves as custodian of the underlying assets. The fund will hold traditional instruments such as US Treasury bills and USD-denominated deposits, which are then represented by digital tokens.

REMEMBER- Regulators in regional financial hubs like Dubai and Doha are laying the groundwork for tokenized finance, with early moves including sandbox programs, licensing frameworks, and pilot projects targeting digital assets. The ADX helped facilitate the region’s first ever digital bond, while big players like ADQ, International Holding Company, and FAB are working on AED-backed stablecoins.

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